Categories Earnings, Health Care

Gilead Sciences (GILD) stock falls as Q4 earnings miss estimates

Biopharmaceutical company Gilead Sciences, Inc. (NASDAQ: GILD) reported a decline in fourth-quarter earnings, despite a modest increase in revenues. Earnings fell short of expectations, while revenues beat. The company’s stock dropped soon after the announcement during Monday’s extended trading session.

Gilead Sciences Q4 2019 earnings infographic

Fourth-quarter adjusted earnings decreased to $1.30 per share from $1.44 per share a year earlier. Analysts were looking for a bigger bottom-line number.

Gross margin was negatively impacted by an increase in selling costs amid inventory write-downs, which was partially offset by lower royalty expenses and R&D expenses.

Net income, on an unadjusted basis, came in at $2.7 billion or $2.12 per share, compared to flat earnings in the prior-year period. The improvement primarily reflects favorable tax effects and gains from equity securities.

Revenue up

Revenues, meanwhile, edged up 1% year-over-year to $5.88 billion and exceeded the market’s prediction. At $5.8 billion, product sales were up 2%. Product sales in the U.S market were unchanged from the prior-year period, but Europe registred a model decline.

Product-wise, higher sales volumes of HIV drug Biktarvy pushed up overall sales. However, it was partially offset by a drop in the sales of chronic hepatitis C virus products.

Outlook

For fiscal 2020, the company currently forecasts product sales in the range of $21.8 billion to $22.2 billion, and unadjusted earnings between $5.15 per share and $5.55 per share. On an adjusted basis, full-year earnings are forecast to be in the $6.05-$6.45 range. The management sees research and development expenses to increase in the mid-single-digit percentage.

Related: Gilead Q3 2019 Earnings Conference Call

Gilead Sciences shares made strong gains this week and closed Tuesday’s regular session higher. The stock, which witnessed significant volatility in the past twelve months, rose 17% since the beginning of the year.

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips

Most Popular

Infographic: Highlights of DocuSign’s (DOCU) Q1 2024 results

DocuSign, Inc. (NASDAQ: DOCU), a leading provider of electronic signature solutions, Thursday reported first-quarter earnings. It also provided guidance for the second quarter and fiscal 2024. The company's top line

Macy’s (M): A few points to consider if you have an eye on this retailer

Shares of Macy’s, Inc. (NYSE: M) stayed in red on Thursday. The stock has dropped 22% year-to-date and 32% over the past 12 months. The retailer witnessed sales and profit

Ocean Biomedical’s scientific co-founder Dr. Jonathan Kurtis gets new patent for malaria vaccine

Ocean Biomedical, Inc. (NASDAQ: OCEA), a biopharmaceutical company focused on clinical programs in oncology, fibrosis, and infectious disease, Thursday said its scientific co-founder Dr. Jonathan Kurtis received a new patent

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top